 |
Patrick Delaforce & Ken Baldry'The Delaforce Family History' - Chapter 9
|
Chapter 9
A short history of Pawn Broking
|
Borrowing money with an agreed (however high) rate of interest against a pledge or pawn has been happening for thousands of years. The end result is the worldwide network of sophisticated retail bankers who operate on the same basis as the original Lombards and the later pawnbrokers. A modern banking overdraft is usually secured to the bank by something of equivalent or higher value. Part of the Delaforce family were Lombards 'men' and goldsmiths in the 16th. century, and were jewellers, goldsmiths, pawnbrokers and commodity/stock brokers in the 18th and 19th centuries in London In 1598 Ben Jonson's 'Every Man in his Humour' showed two men about town talking of a third. Matheo 'Lets give him some pawn.' Bobadilla 'Pawn? We have none to the value of his demand.' Matheo 'Oh Lord man, I'll pawn this jewel in my ear and you may pawn your silk stockings and pull up your boots -they will ne'er be missed!' William Shakespeare wrote 'Redeem from broking, pawn the blemished Crown.' Later Samuel Pepys' description of Lady Peterborough in 1667. 'The woman is a very wise woman, and is very plain in telling me how her plate and jewels are at pawn for money. Charles Dickens' Sketches by Boz in 1836 showed in Chapter 23 page 1 a vivid description of pawnbroking in the early 19th century. William Hogarth's picture of 1751 called Gin Lane is meant to be the first known representation of a British pawnbrokers shop. Broking of pawn has a long history attached to that trade. Although the main retail business started with the Lombard goldsmith-brokers in London in the 16th, century and reached its peak in the middle of the 19th century, the custom started at a very early date, at the highest level. King Henry III about 1240 pledged a valuable 'Image of the Virgin' to obtain money to pay his officers of the Crown. About the same time Robert Grossteste, Chancellor of Oxford University founded the "Oxford Chests". The first one was called the Frideswyde chest. They were charitable loan funds secured by pledges mainly to help support university expenditure on poor students. In the 13th century King Edward I pawned the customs dues to help pay for expenses of war. In the next century King Edward III, having no dues to pawn, deposited his crown on three separate occasions and in 1339 pledged his own and his Queen's crown! The next year, in dire financial straits, the whole of his crown jewels followed! When King Richard II married Queen Anne of Bohemia, he pawned large quantities of jewels with the citizens of London. In 1485 the Earl of Richmond, before becoming King Henry VII, borrowed money from the French King, leaving two live pledges (the Marquis of Dorset and Sir Thomas Boucher). He won the crown at Bosworth Field, borrowed 6,000 marks from the patient citizens of London and then redeemed the two noblemen! In 1564 a Law was passed to fix at ten percent the legal rate of interest and in 1603 James I passed comprehensive legislation 'An act against brokers'. Charles I in 1638 granted the citizens of London a Charter called 'Fees to be taken by the Register for Brokers - for the Bond to be entered into by every Broaker, Brogger & Huckster to the Chamber - Eightpence.' 'For every bargain, contract & pawn for and upon which shall be lent or given one shilling or above and under five shillings - one farthing.'. The rate for transactions of 5 to 20 shillings - a fee of one halfpenny: 20-40 shillings a fee of one penny.
A London Pawnbrokers mid 1850's Charles II passed three Acts in 1673, 1674 and 1680 containing clauses against unlawful pawning by Silk Throwsters. In the early years of the 18th century many goldsmiths gave up pawnbroking, threatened by the giant 'Charitable Corporation for Lending Money to the Industrious but Necessitous Poor.' The Corporation had a capital of £600,000 - a huge amount at that time. After 24 years it went out of business in 1731 charged with receiving stolen goods. The Corporation had 294 pawnbroker members at the time. In 1745 a committee representing the larger and more reputable pawnbrokers introduced a Parliamentary Bill to protect themselves against "Divers persons of ill Fame & Repute who live in Garrets, Cellars and other obscure places taking upon themselves the Names of Pawnbrokers, who charged 6d in the pound per week or 130 percent interest, selling pledges within 3 months." The greatest growth in pawnbroking occurred in the hundred year period 1750-1850. There were in 1750, 250 large London pawnbrokers and double that of smaller establishments. In 1830 there were 1537 licenced pawnbrokers in the UK, of which 380 were in London. By 1864 there were 2500 pawnbrokers in the UK. London had 375, Manchester 200, Liverpool 130 and Birmingham 100. Their capital averaged about £5,000 and they accepted and redeemed about 60,000 pledges each a year. The Pawnbrokers Act of 1756 licenced pawnbrokers to charge 20 percent, a fifth of which was to go to support hospitals and workhouses. Another Act in 1785 compelled all pawnbrokers to register and in 1800 another Act limited charges to 20 percent up to a pawn of £2, 15 percent on two guineas to ten pounds. As important was legislation to ensure pledges could only be forfeited after a year. The usual family pawnbroker establishment consisted of three people. One to value the pawn, one to make out a ticket, and one more to put the article away in store. In the 19th century there were trade groupings. In 1821 it was the Pawnbrokers Institution. In 1836 the Pawnbrokers Association, which in 1847 merged with the Metropolitan United Pawnbrokers Protection Society. The Manchester and Salford Association founded in 1810 was said to be the oldest in the UK, followed by the Liverpool Association. In London the Northern Friendly Society met at Holborn, also called the Queens Head or Holborn Society. The Bouverie Society was another group. The Local Society of Pawnbrokers of Southwark met at the Half Moon Inn, Borough in 1812. The Eastern Society met at the Laurel Tree in Brick Lane in 1813. The famous sign of three balls indicating a pawnbroker establishment to show their trade derived from the Lombard goldsmiths who came originally from the Medicis in Italy. Part of the coat of arms of the Medicis were three blue circular discs. To show the association with goldsmiths the blue discs subsequently became gold balls. ReferencesMr W.A.H. Hows 'History of pawnbroking' 1847. |
|
Contact: Ken Baldry for more information, 17 Gerrard Road, Islington, London N1 8AY +44(0)20 7359 6294 but best to e-mail him |